WHAT THEY ARE SAYING: Senate Approves Landmark One Big Beautiful Bill
7/1/2025
Action Summary
- Legislative Victory: The Senate approved President Trump’s “One Big Beautiful Bill,” a sweeping legislative package aimed at boosting American workers, farmers, and small businesses.
- Core Policy Elements: The bill locks in historic tax relief (including permanent extensions of key provisions from the 2017 Tax Cuts and Jobs Act), strengthens border security, reforms welfare, and funds critical infrastructure projects.
- Air Traffic & Infrastructure Upgrades: Allocates $12.5 billion for modernizing the nation’s air traffic control system, with industry leaders emphasizing the need for a state-of-the-art system to enhance safety and efficiency.
- Broad Sector Support: Endorsed by diverse groups—including airlines, credit unions, agriculture organizations, manufacturing, energy, trucking, mining, and technology sectors—as a boost for economic growth and job creation.
- Tax Certainty & Investment Incentives: Restores confidence for small businesses and capital-intensive industries with measures such as immediate expensing, bonus depreciation, and protection of tax benefits for various sectors.
- Industry and Stakeholder Appeals: Numerous industry leaders and organizations urge the House to promptly pass the bill so that it can be signed into law, ensuring immediate benefits and long-term economic stability.
Risks & Considerations
- The One Big Beautiful Bill (OBBB) includes significant tax reforms and infrastructure investments, which could lead to shifts in federal funding priorities. This may impact Vanderbilt University’s reliance on federal education funds, particularly if resources are reallocated to support these new initiatives.
- The emphasis on tax relief and economic growth could result in reduced federal budgets for education and research, potentially affecting grants and funding available to Vanderbilt University.
- Changes in tax policies, such as the preservation of the credit union tax status and the extension of pro-growth tax policies, may influence the financial landscape for university endowments and investments.
- The focus on infrastructure and technological advancements, including air traffic control and wireless investment, presents opportunities for Vanderbilt to engage in research and development partnerships, but also requires strategic alignment with national priorities.
- Vanderbilt may need to consider the implications of school choice policies included in the bill, as these could affect the diversity and preparedness of future student cohorts.
Impacted Programs
- Vanderbilt’s Financial Aid Office might need to adjust its strategies to accommodate changes in student demographics and financial needs resulting from the bill’s tax and education policies.
- The Office of Community Engagement could play a role in supporting local schools and communities affected by shifts in federal education funding and school choice initiatives.
- Research and Development Departments at Vanderbilt may find new opportunities for collaboration in areas such as infrastructure, technology, and energy, aligning with the bill’s focus on innovation and economic growth.
- The Peabody College of Education and Human Development may see increased demand for expertise in educational policy and school choice, providing opportunities for research and policy development.
Financial Impact
- The reallocation of federal funds towards infrastructure and tax relief initiatives could impact the availability of education and research grants, necessitating adjustments in Vanderbilt’s funding strategies.
- Vanderbilt University might experience changes in its investment strategies and endowment management due to shifts in tax policies and economic conditions.
- There may be increased opportunities for securing funding for research and development in areas prioritized by the bill, such as technology, infrastructure, and energy.
- The potential impact on student demographics and financial aid needs could affect tuition revenue and financial aid distribution at Vanderbilt.
Relevance Score: 4 (The bill presents a need for potential major changes or transformations of programs and funding strategies.)
Key Actions
- Vanderbilt’s Office of Federal Relations should closely monitor the implementation of the One Big Beautiful Bill, particularly its tax provisions and infrastructure funding, to identify potential impacts on university funding and opportunities for collaboration with federal agencies.
- Vanderbilt’s Financial Planning Office should assess the potential impacts of the tax reforms on the university’s financial strategies, including endowment management and fundraising efforts, to ensure alignment with the new tax environment.
- Vanderbilt’s Research and Innovation Office should explore opportunities for increased federal funding in areas such as infrastructure, technology, and energy, as outlined in the bill, to enhance research capabilities and partnerships.
- Vanderbilt’s School of Engineering should consider engaging in research and development projects related to air traffic control and infrastructure modernization, leveraging the bill’s focus on these areas to secure funding and partnerships.
- Vanderbilt’s Peabody College should evaluate the implications of the bill’s school choice provisions on educational policy and potential impacts on educational programs and partnerships.
Opportunities
- The bill presents an opportunity for Vanderbilt’s Business School to conduct research on the economic impacts of the tax reforms and infrastructure investments, providing insights that can inform policy and business strategies.
- Vanderbilt’s Law School can explore the legal implications of the bill’s provisions, offering expertise and analysis on regulatory changes and their effects on various sectors.
- The emphasis on energy and technology in the bill aligns with Vanderbilt’s commitment to sustainability and innovation, providing opportunities to expand research initiatives and partnerships in these areas.
- By engaging with policymakers and industry leaders, Vanderbilt can position itself as a thought leader in discussions on the bill’s long-term impacts on the economy and society.
Relevance Score: 4 (The bill presents significant opportunities and potential impacts on Vanderbilt’s financial strategies, research initiatives, and educational programs.)
Timeline for Implementation
- House Action Deadline: by July 4, 2025
Multiple stakeholders urge that the bill be passed and sent to President Trump’s desk by July 4 (or before the July 4th recess), making this the shortest and most urgent timeline referenced. - Other Provisions: Effective July 2027, with certain tax credits extending through 2032 and 2033
Specific elements within the legislation—such as ending de minimis for commercial shipments and nuclear tax credits—include later effective dates, but the immediate legislative push focuses on prompt House action.
Relevance Score: 5
Impacted Government Organizations
- Internal Revenue Service (IRS) / Department of the Treasury: The sweeping tax relief provisions directly affect tax administration and enforcement, requiring adjustments in IRS operations.
- Department of Homeland Security (DHS) / Customs and Border Protection (CBP): The legislation’s focus on border security mandates enhanced coordination and resource allocation for immigration and border enforcement.
- Federal Aviation Administration (FAA) – Under the Department of Transportation (DOT): With significant funding allocated for overhauling the nation’s air traffic control system, the FAA is tasked with modernizing ATC infrastructure.
- Department of Agriculture (USDA): Agricultural safety net reforms and tax provisions impacting farmers and rural communities require USDA oversight and program adjustments.
- Federal Communications Commission (FCC): The restoration of FCC auction authority and spectrum management provisions will directly affect the FCC’s role in regulating and overseeing wireless communications.
- Environmental Protection Agency (EPA): Provisions related to biofuel tax credits and adjustments to renewable fuel standards involve EPA’s environmental regulatory functions.
- Department of Energy (DOE): Measures affecting nuclear energy support and the extension of the Loan Program Office’s authority impact DOE’s energy policy and funding programs.
Relevance Score: 3 (Six to ten government agencies are impacted by this comprehensive legislative package.)
Responsible Officials
- Secretary Duffy – Charged with executing President Trump’s vision by overseeing the upgrade and implementation of a state-of-the-art air traffic control system.
Relevance Score: 5 (The directive impacts a Cabinet-level official responsible for major federal infrastructure implementation.)